The second week after a layoff is the time to begin evaluating your new financial and career reality. The sooner you address these topics, the sooner you’ll be able to make sound decisions, financial and otherwise, to help you regain control over your destiny.
Without question, one of the most difficult aspects of losing your job is the financial uncertainty that suddenly clouds your life. While you can’t change the fact that your income has stopped, you can minimize the impact of the loss by making a conscious decision to actively manage your new financial reality.

1. Determine available cash flow and assets
   You can’t begin to plan for the future until you understand your current financial standing. Add up your cash on hand, unemployment benefits, severance payments and assets you are willing to liquidate.
2. Cut expenses
   Sit down with your spouse or partner, if applicable, to determine where to trim or eliminate spending. Look for opportunities to negotiate new payment terms with vendors and creditors. If feasible, implement your cost-cutting in stages to avoid the sense that you are “punishing” yourself or your family members for your job loss.
3. Assess your insurance
   Don’t leave yourself open to a catastrophic loss due to insufficient health, life or property insurance. Shop around for cost-effective insurance solutions that will help you protect against major losses.
4. Explore options for short-term work
   If cash flow is an issue, you or your spouse may want to find temporary, part-time or consulting work. Project work is a good way to enhance your resume and lessen your anxiety during this transition. Just be aware that payment of your unemployment benefits is impacted by earned income.
5. Create a new budget
   Construct a revised spending/income plan that reflects your new economic reality and share it with all family members. Use this plan to determine how quickly you’ll need to start earning income again.